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Ford Motors during the First World War

The occurrence of the First World War had greatly affected the automobile production of the Ford Motor Company. Henry Ford’s pacifist policies were very successful in preventing the company’s downfall. In fact, the company became more popular in the First World War when Henry Ford joined other pacifists in Europe to prevent the war from happening. Although their efforts had failed to stop the war, Ford Motors Company became very active in supporting the Allied Power’s participation in the war. The company’s Model T eventually served as the underpinnings of some of the military vehicles, including the M1918 as well as the 1916 ambulance. Ford’s participation in the Allied Powers’ war effort continued until the First World War ended.

Ford Motors after the First World War

Ford Motor Company started to lose its dominance in the automotive market a few years after the First World War, particularly when Edsel Ford was charged with being his father’s successor. The company’s gradual decline was caused by its continuous use of the personalized management mechanism, that was starting to become obsolete, as-well as the company’s neglect of consumer demands for more improved vehicles.

The company’s sales were further worsened by the expansion of some of its closest competitors’ market share. General Motors and Chrysler were able to grab a significant share of the market from Ford by producing high-quality vehicles and providing credit opportunities to their customers. However, Ford was able to recover from its previous loses by providing similar opportunities to its customers. In addition to this, Ford’s stoppage of the production of the Model T and the introduction of the redesigned version of the Model A had placed the company back on track.

Ford’s operation expanded into the luxury market division, when the company acquired the Lincoln Motor Company on February 2, 1922. This was followed by the company’s ventures on financing the cultivation of rubber in Brazil in 1928. The rubber cultivated would be used in producing synthetic rubber for use on Ford vehicles. However, this venture failed and only caused the company to spend millions of funds.

The company’s operation further expanded in 1938, when the Mercury division was established. This division would handle the mid-priced automotive market’s demand for vehicles. Unfortunately, all of these expansion efforts were halted by the “Great Depression.”